Lifestyle   Money
By Consumer Team | 12 Oct. 2021

9 Tips on How to Spend Less On Car Insurance

Car Insurance

Having car insurance is inevitable if you drive. Without it, you can get huge fines or end up losing your driver’s license. Not to mention the costs you can incur in case of an accident. Whether you choose full auto coverage or the basic liability plan, it’s good to get the best deals. If you want to save on car insurance costs, here are tips on how to spend less on car insurance.

What Is the Average Cost of Car Insurance?

Many factors determine the cost of car insurance. It could be the state you live in, the type of coverage, the insurance company, the type of car you drive, etc. According to data from the National Association of Insurance Commissioners in 2018, the average car insurance cost is $1190 for a typical person. This means that after purchasing a car, you are likely to pay $100 or more monthly for auto insurance.

9 Tips of How to Spend Less On Car Insurance

There are several strategies you can implement to save money on car insurance. The following are tips on how you can reduce your auto insurance expenses.

1. Shop Around

When looking for the right insurance company, shop around and get quotes from several companies. The prices can vary from one company to the other. Look for recommendations from family and friends to help you decide which insurance company provides the best deals. Ensure you choose a reputable company that offers comfortable services.

2. Observe Safety on the Road

Drive safely if you want to keep your insurance rates low. Today, there are plenty of in-car distractions and this requires drivers to take caution on the road. If you are attentive, you will avoid many moving violations that can increase your auto insurance rates. There are points assessed to every driver for any moving violation. Having more points translates to high insurance premiums.

3. Good Credit History

The most important thing that determines the insurance cost is the driver’s record. If you engage in a lot of accidents, you cost the insurance company more money. However, some companies also check your credit rating. Having good credit history reduces your insurance costs. Research shows that people who manage their credit well are likely to make fewer claims.

4. Have More Than One Insurance with Same Company

It is a great idea to bundle your insurance and maintain the same company to enjoy discounts. For instance, you can get discounts if you have home and auto insurance or have insured more than one car. Other insurance companies offer price breaks if you are a longtime customer. It is good to research well and make price comparisons to enjoy multi-policy discounts.

5. Surge Your Deductibles

When you pick an insurance company, you have to choose your deductibles. This is the money you can pay in the event of theft, accident, and other damages before the insurance company picks up. Based on your insurance policy, the deductibles can range from $250-$100. Therefore, the lower the deductible, the more the annual premium. Higher deductibles translate to lower premiums. Practice saving on monthly car insurance premiums so that you can afford higher deductibles in case of a claim.

6. Pay Annually

Making annual payments for your car insurance is cheaper than the monthly installments. Paying monthly comes with added interest which increases your cost. If you cannot afford to pay for car insurance annually, use the 0% purchase credit card. It helps you spread your repayment costs interest-free over some months. It is recommended to maintain a maximum of 12 months to prevent the payment from overlapping to the next year.

7. Have Extras in Mind

When comparing the prices of car insurance, it is good to consider whether extras are included as add-ons or standard. These extras include a legal cover, windscreen cover, and courtesy car cover. Generally, you have to pay for these costs. Therefore, consider if you can do without them before agreeing to pay. After all, you don’t want to pressurize yourself with covers you need.

8. Limit Mileage

The lesser you drive, the more you save. Spending less time on the road reduces the chances of having an accident. This is why many insurance companies provide low mileage discounts for drivers who drive less as compared to regular drivers. It is good to provide an accurate mileage estimate during a quote.

9. Avoid Modifications

Avoid car modifications like adding alloy wheels, performance upgrades, and body kits because they increase your insurance costs. Again, such modifications attract thieves. Cars with these modifications are also expensive to fix because the parts are pricey.


Insuring your car is a smart move and the cost of premiums can vary greatly based on several factors. I hope the above tips will give you the right direction to lowering your insurance costs. Remember to compare the prices of different can insurance companies to find the right coverage that suits your budget.